A 1031 Like-Kind Exchange is a legal way to sell one or more properties in direct exchange for another property and delaying capital gains on the transaction. 1031 refers to the IRS Code which allows this sort of transaction.
Title Service of the Plains serves as qualified intermediary in 1031 like-kind exchanges of real property. Title Services of the Plains provides standard exchange agreements that outline the structure of a delayed exchange transaction and the responsibilities of the respective parties, and, while we do not provide tax advice, we can work with and assist the taxpayer’s attorney and tax professional.
- The taxpayer assigns sales contract of relinquished property to Title Services of the Plains.
- Net sales proceeds paid to Title Services of the Plains.
- The taxpayer conveys title directly to the purchaser of relinquished property.
- The taxpayer identifies replacement property within forty-five (45) days from the transfer date of the relinquished property.
- The taxpayer assigns sales contract of replacement property to Title Services of the Plains.
- By the earlier of one-hundred eighty (180) days from the transfer date of the relinquished property, or the due date of the taxpayer’s tax return, closing of the replacement property occurs.
- The seller of the replacement property conveys title directly to the taxpayer.
- Employing a qualified intermediary is a practical and efficient way to structure delayed exchanges.
Please call for fees and more information about the services that Title Services of the Plains provides.